A company pays a basic rate of N$5 per hour. An employee is expected to work seven hours a day Monday to Friday. Due to some backlogs, the employee worked five additional hours per week. All overtime hours are paid at time and a half. Because of some faulty material, 15 hours of direct labour time were registered as idle. Employee contributes 10% towards medical aid, 10% towards pension and 10% is tax. All these deductions are based on gross wages. Assume a month has four weeks. Calculate the employee’s basic wage for the

A company pays a basic rate of N$5 per hour. An employee is expected to work seven hours a day Monday to Friday. Due to some backlogs, the employee worked five additional hours per week. All overtime hours are paid at time and a half. Because of some faulty material, 15 hours of direct labour time were registered as idle. Employee contributes 10% towards medical aid, 10% towards pension and 10% is tax. All these deductions are based on gross wages. Assume a month has four weeks. Calculate the employee’s basic wage for the

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter2: Computing Wages And Salaries

Section: Chapter Questions

Problem 8PB

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R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)
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